Havas posts rise in profits

French advertising firm Havas's net profit for the first half of its financial year rose to £23m, compared with £14.9m in the same period last year, which was in line with analysts' forecasts.

Havas's improved profit performance was achieved due to lower costs, as operating income dropped to £50.7m from £53.4m, weighed down by a charge linked to the departure of its former chairman and chief executive, Alain de Pouzilhac.

Excluding the charge, the operating margin would have improved to 11.1% from 10%, Havas said.

The world's sixth-largest advertiser also said the group's results needed to be "significantly improved by a combination of revenue growth, translating into increased market share, with a substantial rise in profitability".

Havas owns ad agencies including Euro RSCG Worldwide and has clients such as Peugeot and Procter & Gamble.

The company's results follow strong earnings from Omnicom , the world's largest advertising group, and from French rival Publicis last month.

Havas has already posted a 2.2% rise in first-half sales to £473m, bolstered by new client wins.

The firm has been through a turbulent period, with French financier Vincent Bolloré winning control of Havas and ousting Mr de Pouzilhac.

Mr Bolloré, now Havas chairman and its largest shareholder with a 22%, snapped up 6% of British media buying firm Aegis last month.

This move fuelled speculation he could seek to combine Havas and Aegis or at least merge their media planning units - but denied by the UK firm.